Jim in PA
Dryer sheet aficionado
Here is a scenario for discussion. Suppose that in the election, Joe Biden is elected and his coattails are long enough to give the Democrats control of the Senate. I think that most observers believe that the Democrats will keep control of the House, so under this scenario, they have control of both houses and the Presidency. Ok a last supposition, they then make good on the political promise to roll back the previous tax cuts.
My question is: when would that tax increase be likely to take effect? In 2021 or 2022? One of my current tax planning items is converting Traditional IRAs to Roth. I’ve been fairly aggressive in doing that, but have more to do. I’m doing my 2020 tax planning, but if this scenario we’re to unfold, I’d be looking to convert even more in late 2020 if we could have higher rates starting in 2021. Is that likely?
My question is: when would that tax increase be likely to take effect? In 2021 or 2022? One of my current tax planning items is converting Traditional IRAs to Roth. I’ve been fairly aggressive in doing that, but have more to do. I’m doing my 2020 tax planning, but if this scenario we’re to unfold, I’d be looking to convert even more in late 2020 if we could have higher rates starting in 2021. Is that likely?